my question is at what point of time,company comes to know that there is a Permanent Diminution in value of long term investment,take for Eg investment in HDFC top 200 or investment in joint ventures or associates?I just want to know the signs of the same ,As methodology of calculation is already there in concerned accounting standard or IFRS..
Read the attached article
@ Shilps:Thax for the reply but will u plz elaborate the circumstances in which one sholud be sure tht it is a indication of permanent diminution in the value..what r the indicators?
Dear Maulik,
In attached file you will find related explanation under point A.
There is not a single indicator as such. Management need to consider several factors together to reach at the conclusion abt permanent diminution in invst.
@ Shilpa:Thax for the early reply, but i just want to know that are there any industry specific guidelines,as practically there must be many cosiderations which should be taken in to account..
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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